1. Marketing
Product Placements

2. Product Placement
Product Placement: purposeful incorporation of commercial content into noncommercial settings (tv/movie)
Companies pay to have their product, brand or service “Placed” in
television shows, movies, music video, or video games as props
Used by large fortune 500 companies that can afford this as very expensive.

3. What Venues are Used?
Movies TV
Radio
Video Games
Music Videos
Books

4. How to Find Mentioned by brand name Shown in movie/show
Can be used during movie/show AND brand is clearly defined
Yes Person is wearing Oakley Glasses
Not Person is wearing unrecognized sun glasses
Mentioned by brand name
Yes: “Can you get me the Cass Clay”
No: “Can you pass the Milk”
Shown in movie/show
Yes: Tropicana Orange juice is on the counter, nothing to do with the scene, but camera slowly pans over the product

5. Why Use Product Placement
To achieve prominent audience exposure, visibility, attention, and interest
The more successful the program, the longer shelf life of the product placement (movies watched for years)
products should be visible within a scene, but not the focus
product needs to fit, almost seamlessly (almost being the key word here) into the shot
To increase consumer memory and recall of the brand or product
Research shows raises brand awareness by 20%
brands placed in movie scenes enjoy higher brand recall than those that are not

6. Why use Product Placement?
Show your product being used
can call attention to several features of a product that a short commercial spot can’t – shows how used
Doesn’t look like a commercial – “Stealth advertising”
Hundreds of new television stations - no telling what your target market is watching or channel
Advertising dollars are often wasted on expensive commercials that are used to reach millions –
The popularity of TiVo and similar digital video recorders allows viewers to skip the commercials

7. Cost of Product Placement
Retainer Fees – Pay large fees
Supply of the main product that is to appear in the movie or television set
Trade: some production companies do not ask for payment but instead ask for sponsorship and advertisement buyouts from the product owner.

8. Product Placement in Movies
One of the first instances of successful product placement
Sales increased by 65% following movie release
You Tube pic is linked to video

9. Results of ET
Hershey’s agreed to promote E.T. for $1 million in advertising; and Hershey could use E.T. in its ads
Sales jumped 65% within 2 weeks
This movie tie-in all but fell into the lap of Hershey, which sold some $35 million worth of Reese's Pieces last year....

10. Product Placements on Television
Seinfeld “The Junior Mint” episode
Great example of product placement on television

11. Quiz Name two ways to recognize product placement?
Name one reason Product placement is used?
What is the first successful use of product placement known?
What company turned down using their candy in ET?
How much revenue was earned as a result for Hershey’s?

12. Looking for Product Placements
The 2007 film Transformers is said to include over 70 different product placements
In this activity, we will watch the movie Transformers and list all of the different products/brands/companies that you see during the film

13. Transformer Placement Discussion
Placement occurs when:
Product shown
Product Used
Product brand mentioned
Product placement does not occur when something is used but no brand is mentioned/shown

14. Transformer Placement Discussion
Which placements in the movie were the most effective and least effective?
What seems to separate a good, “sticky” placement from a poor, forgettable one?
Have you purchased a product after seeing it on a movie or television?